According to a new report from data firm Kaiko, Circle's USDC now holds 56% of stablecoin trading against the euro, overtaking Tether's USDT. In January 2024 USDC's share was just 10%, and the rise sped up after major exchanges restricted USDT trading for EEA customers because of MiCA. USDC order books against the euro are now about 40% deeper than USDT's. Globally, however, USDT remains dominant, with a supply about 2.5 times that of USDC.

What it means: The figures show how quickly regulation can change a market's structure. In under three years, the European market moved from dominance by a stablecoin without an EU licence to one issued by a licensed e-money institution in France. The EBA classifying USDC as a significant e-money token, bringing it under direct EU supervision, reinforces the trend, as do the automatic conversions exchanges carry out to comply. There is another side, though: the discussion is about dollar stablecoins traded against the euro, while euro stablecoins remain a small part of the market, which concerns the ECB as a matter of monetary sovereignty. For businesses and individuals in Greece who use stablecoins, the practical consequence is that liquidity and the best prices on European platforms are now in USDC and authorised euro tokens. Companies that accept stablecoin payments or hold cash in them should check that their providers support MiCA-compliant tokens and update payment instructions for customers so tokens that will no longer be accepted are not sent.

Read the original on Cointelegraph

Related service: Consulting

Related stories